Which of the Following Would Be an Example of an External

question 87

Multiple Choice

Which of the following would be an example of an external benefit?

• A) More people start to ride the bus and as a result air pollution is reduced.
• B) Firms are able to reduce their costs of production by using a more efficient technology.
• C) The government requires polluting firms to pay a special tax.
• D) A firm has just gotten permission to open a landfill on property that is adjacent to your home.

---

Definitions:

Experimental Study

A research methodology that assesses the cause-and-effect relationship between manipulated independent variables and measured dependent variables in a controlled environment.

Treatment

Methods or interventions, including medication, surgery, or therapy, designed to manage or cure medical or psychological conditions.

Internal Validity

The extent to which a study can rule out alternative explanations for its findings, ensuring that the results are due to the manipulated variables.

Dependent Variable

A variable in an experiment or study that is affected or influenced by changes in another variable, typically known as the independent variable.